Saudi energy services firm Arkad forms joint venture with ABB

Dubai

SAUDI energy services company Arkad, which is building a nationwide pipeline network for oil giant Saudi Aramco, will expand outside the kingdom in a venture with ABB Ltd that opens the doors to business in North Africa and the Gulf region.

Arkad signed a deal to acquire a majority stake in a new joint venture with ABB's oil and gas engineering, procurement and construction (EPC) unit, managing director Hani Abdelhadi said in an interview. The project will give closely held Arkad a foothold in Algeria, Kuwait and the United Arab Emirates, he said. Both Arkad and ABB declined to disclose the size of their respective stakes and the value of the transaction, which they target for completion in December.